With the merger of Kadimastem and Swiss startup NLS Pharma still underway, the later has secured $3 million in equity financing of preferred shares. This is part of a broader strategic partnership, which includes a $25 million equity facility agreement to support their planned merger. The funds will support the clinical development of regenerative therapies for ALS and type 1 diabetes.
NLS Pharma IS a Swiss clinical-stage biopharmaceutical company focused on developing innovative therapies for central nervous system (CNS) disorders, announced the closing of a $2 million equity financing of preferred shares at a stated value of $1.65 per share, with a potential second closing of up to an additional $1 million of preferred shares at a purchase price of $1.65 per share. The second closing of $1 million of preferred shares is subject to shareholder approval. The offering closed on Friday, March 28, 2025, and the gross proceeds to the Company from the offering were $2 million, before deducting offering expenses payable by the Company.
The Company currently intends to use the net proceeds from the offering for working capital, general corporate purposes and expenses relating to the merger with Kadimastem Ltd., a clinical-stage cell therapy company specializing in neurodegenerative diseases and diabetes.
In addition, NLS has signed a $25 million committed equity facility agreement to support the planned merger with Kadimastem. This funding is intended to facilitate the merger by enabling the merged company to execute Kadimastem's phase IIa multi-site clinical trial for Amyotrophic Lateral Sclerosis (ALS) using AstroRx® and phase I for the IseltRx for type 1 diabetes patients, which is planned to commence following the merger.
"We are pleased to have secured this capital on favorable terms, which reflects investor confidence in our vision and the transformative potential of our planned merger with Kadimastem," said Alex Zwyer, CEO of NLS. "We believe that with these financial resources in place, we are well-positioned to move forward to complete the transaction and creating a leading company in the field of regenerative medicine and CNS disorders.
The equity investment and committed equity facility aim to strengthen the merged company's balance sheet and provide the flexibility needed to support the integration process and future pipeline development following the merger.
This news follows the filing of an amendment to NLS's registration statement on Form F-4 (File No. 333-284075) submission with the SEC. The merger with Kadimastem remains subject to customary closing conditions, including regulatory and shareholder approvals.
(Press release/RAN)
The new Swiss Venture Capital Report was published on 26 January. It analyses 304 financing rounds closed in 2020 and includes further article such as an interview with Michael Hengartner, President of the ETH Board, and a list of Swiss "soonicorns". 
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